Marichu Fornolles Guardians completed the following transactions during October 2014. Oct. 1 Fornolles transferred cash from a personal account to an account to be used for the business, P243,000. 3 Fornolles invested in the business personal weapons having a fair market value of P34,000. 4 Bought communication equipment on account from Pesa Electronics, P13,740. 5 Paid rent for the month, P7,650. 6 Bought a used service vehicle car for P93,000, paying P45,000 down, with the balance due in thirty days. 9 Received invoice and paid insurance premium to Cacawa Fidelity company for bonding employees, P7,710. 12 Performed security services for Loreta Galleries. Billed Loreta for services rendered, P8,250. 16 Received bill from Marcos Printers for office stationary, P1,757. 17 Billed Pascua Construction for services rendered, P14,790. 22 Paid Regal Shell Service for gasoline for service vehicle, P720. 24 Performed security services at a fashion jewelry fair, Billed organizers for services rendered, P17,500. 27 Paid Pesa Electronics P4,500 to apply on account. 29 Received P8,250 from Loreta Galleries in full payment of account. 30 Billed Merchant Bank for services rendered, P21,600. 31 Receive and paid telephone bill, P1,030. 31 Paid salaries to employees, P31,500. 31 Fornolles withdrew cash for personal use, P18,000. Required: 1. Prepare the journal entries for the October Transactions. 2. Set up the following ledger accounts using T-account and post all the journal entries: Cash; Accounts Receivabe; Prepaid Insurance; Arms and Communications Equipment; Service Vehicle; Accounts Payable; Fornolles, Capital; Fornolles, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Supplies Expense; gasoline Expense; and Utilities Expense. 3. Prepare a trial balance 4. Prepare the income state
Marichu Fornolles Guardians completed the following transactions during
October 2014.
Oct.
1
Fornolles transferred cash from a personal account to an account
to be used for the business, P243,000.
3
Fornolles invested in the business personal weapons having a fair
market value of P34,000.
4
Bought communication equipment on account from Pesa Electronics,
P13,740.
5
Paid rent for the month, P7,650.
6
Bought a used service vehicle car for P93,000, paying P45,000
down, with the balance due in thirty days.
9
Received invoice and paid insurance premium to Cacawa Fidelity
company for bonding employees, P7,710.
12
Performed security services for Loreta Galleries. Billed Loreta
for services rendered, P8,250.
16
Received bill from Marcos Printers for office stationary, P1,757.
17
Billed Pascua Construction for services rendered, P14,790.
22
Paid Regal Shell Service for gasoline for service vehicle, P720.
24
Performed security services at a fashion jewelry fair, Billed
organizers for services rendered, P17,500.
27
Paid Pesa Electronics P4,500 to apply on account.
29
Received P8,250 from Loreta Galleries in full payment of account.
30
Billed Merchant Bank for services rendered, P21,600.
31
Receive and paid telephone bill, P1,030.
31
Paid salaries to employees, P31,500.
31
Fornolles withdrew cash for personal use, P18,000.
Required:
1. Prepare the
2. Set up the following ledger accounts using T-account and post all the
journal entries: Cash; Accounts Receivabe; Prepaid Insurance; Arms and
Communications Equipment; Service Vehicle; Accounts Payable; Fornolles,
Capital; Fornolles, Withdrawals; Service Revenue; Salaries Expense;
Rent Expense; Supplies Expense; gasoline Expense; and Utilities
Expense.
3. Prepare a trial balance
4. Prepare the income state
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 5 images
